Schedule 18 FA 2019 extends VAT Grouping to individuals and partnerships (including Scottish partnerships) that control the other bodies in a VAT Group, with effect from 1 November 2019.

To be eligible, the legislation requires the individual or partnership to meet the following conditions:

  • They control the UK company (or companies) that are in the VAT Group.
  • The individual or partnership has a UK business establishment.
  • They are liable or entitled to be Registered for VAT.

'Control' here means that, if they were a company, the individaul or partnership would be the 'holding company' of the other body corporates as defined by s 1159 of, and Schedule 6 to, the Companies Act 2006.

Previously section 43 VATA 1994 limited VAT Grouping to bodies corporate, however this had been tested in the courts who had found that a controlling partnership or individual should be entitled to join a VAT Group with any bodies that it controls.


VAT Groups